Information Technology Reference
In-Depth Information
1.3.2.2 Role of Information in the Production Process
Under the digitized production environment, two changes have been observed. One
is the replacement of the production process from manual to automated, and in this
mode, robots are programmed to copy the production methodology once it is
digitized. For example, skilled craftsmanship has been replaced with Numerical
Controlled (NC) lathe, machining centers, and factory automations.
The other change is the reduction of inventories. As the information about the
demands of parts is visualized and shared between suppliers and users, extra
inventories are thus eliminated. Consequently, extra production capacities are
eliminated, and the level of competitiveness is increased. For example, the evolu-
tion of the analog “Kanban system” has prevailed across countries. The system
originally used paper slips eventually replaced by a digitized supply chain manage-
ment system, thus making it possible to conduct cross-border control of
procurements, inventories, and production.
1.3.2.3 Meaning of Evolution from IT to ICT in the Production Process
IT has brought about a significant change in the production industry; this process
has been accelerated by digitization. It has transformed the meaning of production
from something focused on physical (tangible) goods to one that is centered on
information (intangible) processing. In the first decade of the twenty-first century,
broadband communication, which is synonymous with the Internet, also changed
the IT landscape. Large amounts of information processing are now being
outsourced by tangible production industries. Thus, it can be said that ICT has
created and expanded the scope of the information processing industry.
Structures of information processing have also changed, and distributed com-
puting, such as grid computing, has become possible [NII]. Cloud computing has
also been invented, and production has taken a new shape, with ITeS has become
applicable to all production industries.
1.4 Service Creation and ICT
ICT contributes to the promotion of social development. In the following,
illustrations of the use of ICT to create the production of services are presented.
Some cases are described to demonstrate the services that have become the core
source of competitiveness.
